ILMN finds buyers at key support level
Illumina Inc. (ILMN) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
ILMN finished the week 1.45% higher at 307.07 after edging lower $2.70 (-0.87%) today on low volume, underperforming the Nasdaq 100 (-0.3%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ILMN as at Jan 11, 2019):
Friday's trading range has been $6.06 (1.97%), that's far below the last trading month's daily average range of $12.62. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ILMN. Prices continued to consolidate within a tight trading range between 295.50 and 309.89 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving higher in the prior session, the share closed lower but above the previous day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 303.11 earlier during the day, Illumina bounced off the key technical support level at 305.00 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move above 309.89 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 309.17. The last time this happened on January 3rd, ILMN actually gained 6.49% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 309.89 where further buy stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Illumina. Out of 397 times, ILMN closed higher 56.17% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.20% with an average market move of 1.30%.